Amazon Kindle Fire Update

The tablet released late last year that promised to take over the tablet market is already making a splash in the industry. The Kindle Fire, Amazon’s entry into the tablet industry after years of leading the e-reader industry, is already the number 2 tablet in the world.

According to predictions by IHS iSuppli, the Kindle Fire had a 14% market share in the tablet industry in Q4 2011. This figure outpaces every other tablet in the industry besides the iPad, which claims a 57% market share. However, the iPad has seen a decline in its market share, falling from 62% in 2011 and 87% in 2010.

Rumors have been circulating that Apple is set to release an iPad 3 this year, including a smaller sized one in hopes to ward off the Kindle Fire. It’s likely this tablet would have a retail price of $300-500, putting it closer to that $199 sweetspot the Kindle Fire has claimed.

Will the Kindle Fire ever overtake the iPad? It’s highly unlikely, due to Apple’s heavy marketing efforts in the past few years. However, it will keep Apple on its feet as they work harder to maintain their market share.

– Bryan Nagy